sinking fund

The Sinking fund is for the costs of future capital expenses. The amount in the fund must be enough to
cover all the expenses for:

• painting common property
• obtaining property for the owners corporation (for example, mowers or washing machines)
• renewing or replacing any fixtures on the common property and any specific property owned by the owners corporation
• replacing, repairing or making good the common property
• any debts, other than amounts covered by the administrative fund
• other capital expenses.

Owners corporation are required to have a 10-year sinking fund plan. The plan means that an owners corporation has to decide what work will need to be done in the future and plan when and how it will pay for it.